Gambia’s total expenditure, net lending declined to D10.7 billion

By Pa Modou Cham

The governor of central bank Bakary Jammeh has explained that The Gambia’s total expenditure and net lending declined to D10.7 billion or by 19.1 percent reflecting mainly the market drop in interest payments by 20.4 percent.

These were revealed at the review of the recent economic developments by the monetary policy committee (MPC) of the central bank of The Gambia. 

He said the budget balance, including grants has narrowed to a deficit of D4.0 billion in the nine months to end-September 2018 compared to a deficit of D7.5 billion in the corresponding period of a year ago.

On domestic debt, governor highlighted that the stock of domestic debt increased slightly to D29.66 billion (42.7 percent of GDP) as at end-October 2018 from D29.14 billion (42.0 percent of GDP) in the corresponding period of year ago.

He pointed that the stock of treasury and Sukuk-Al Salam bills increased by 0.96% to D17.14 billion during the period under review.”

Yields on all treasury bills increased, he said the 91-day, 182-day, and 364-day treasury bills rates increased from 3.68 percent, 4.77 percent, and 6.34 percent in October 2017 to 4.97 percent, 6.83 percent, and 9.25 percent respectively in October 2018.

“As part of broader reforms of the monetary policy framework, of the bank, the central bank has started issuing its own bills for liquidity management beginning October 2018. The bank has also introduced the interest rate corridor comprising overnight lending and deposit facilities,” he stated.

On government fiscal operations, he reiterated that preliminary government fiscal operations for the nine months to end-September 2018 indicate total revenue and grants of D7. 8 billion compared to D10.9 billion in the same period last year. “Domestic revenue, comprising tax and non-tax revenues, rose by 16.0 percent to D6.7 billio.